UAE carriers weigh up fleet options as Boeing delivery delays continue
Airlines worldwide are feeling the impact of Boeing delivery delays, particularly in the United Arab Emirates (UAE), where Boeing models account for 53.6% of aircraft in service and 67% of aircraft on order, according to the CAPA - Centre for Aviation Fleet Database.
In response, flydubai is adding and extending leasing agreements and considering Airbus alternatives. Emirates Airline is investing USD3 billion in a major fleet retrofit programme while it awaits the 777X.
flydubai no longer expecting to receive any new aircraft throughout remainder of 2024
On 22-Jul-2024, flydubai announced it is no longer expecting to receive any new aircraft throughout the remainder of 2024.
Just days earlier, the carrier said it was scheduled to receive seven additional aircraft by the end of the year, with plans to hire more than 130 new pilots to support the fleet expansion.
Larger carriers including Emirates Airline have also aired grievances with Boeing, with Emirates not expecting to receive its first 777X until 2026.
Boeing models comprise 67% of UAE aircraft order book.
United Arab Emirates aircraft share by aircraft class on order as at 05-Aug-2024.
As a key transit hub, UAE carriers rely on a constant stream of new aircraft to serve their ever expanding networks.
However, as supply chain constraints continue, airlines are forced to seek alternative measures to meet capacity needs.
flydubai weighs up the cost of manufacturer loyalty
flydubai reported it has had to enter into ACMI lease agreements and extend existing aircraft leases to mitigate Boeing delivery delays and prevent capacity shortages, leading to increased costs.
An all-Boeing operator, flydubai currently has an order book of 157 aircraft, comprising 127 737s and 30 787-9s (the 787s have been announced but not added to the Boeing backlog at the time of writing).
Following recent developments, CEO Ghaith Al Ghaith stated the carrier may consider introducing Airbus aircraft to its fleet as it prepares to issue a tender for a significant narrowbody aircraft order later this year, which is set to exceed 125 aircraft.
Emirates revisits an old classic
Uncertain aircraft delivery timelines have long plagued Emirates, which announced a landmark order for 150 777X aircraft in Nov-2013.
More than a decade later, the aircraft type has yet to debut amid challenges including the global COVID-19 pandemic and certification delays, and is now not expected to enter service until 2026.
President Sir Tim Clark stated that as a result of the delays, Emirates has had to retain and refurbish its existing 777s.
The airline is undertaking a USD3 billion retrofit programme, refurbishing 110 A380s and 81 777s with new premium economy cabins, seats and cabin finishings.
In May-2024, Emirates CEO Sheikh Ahmed bin Saeed Al Maktoum stated Boeing had "promised they would do their best" to rectify 777X certification delays.
As the 11 year anniversary of Emirates' initial 777X order approaches, it remains to be seen whether Boeing will deliver on this promise.
A new direction for Boeing
In Jul-2024, Boeing appointed Robert K Ortberg as its new president and CEO.
With an extensive background in manufacturing and aerospace - serving with companies including RTX, United Technologies and Rockwell Collins - Mr Ortberg's appointment may point to a renewed focus on production.
For now, UAE airlines are forced to revisit their fleet plans or risk losing crucial capacity.